FlixBus A Smart and Green Cycling Experience for Everyone Martin Bethge, Senior Network Planning September 2018, Eurovelo and Cycle Tourism

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1 FlixBus A Smart and Green Cycling Experience for Everyone Martin Bethge, Senior Network Planning September 2018, Eurovelo and Cycle Tourism Conference Limburg

2 Agenda 1. Outline the Cycle FlixBus 2. Vertical or Horizontal? 3. Economic Viability 4. One Minute Summary 1

3 Agenda 1. Outline the Cycle FlixBus 2. Vertical or Horizontal? 3. Economic Viability 4. One Minute Summary 2

4 >1.200 Daily Connections Employees 28 Destinations Countries Buses Bus Drivers 3

5 FlixBus, FlixTrain & Bike Equipment 2018 FlixBus D-A-CH Every 1-2 hours between big cities One to multiple buses per day per all other connections 90% of all rides are equipped with bicycle racks of 3-5 slots D-A-CH as driver and first mover FlixBus and Bikes Nordics Oslo Stockholm Copenhagen Stockholm Italy Ferrara Torino Rome Milan Spain Florence Genova Nice Barcelona FlixTrain and Bikes Launch FlixTrain Berlin Hannover Göttingen Kassel Fulda Frankfurt Darmstadt Heidelberg Stuttgart 2. Hamburg Osnabrück Münster Gelsenkirchen Duisburg Düsseldorf Köln Available in 18 countries USA Las Vegas Phoenix Tucson 4

6 : Σ bikes transported Yearly development Legal security for bus partners due to Vienna Convention Test phase Equipment level for D-A-CH connections at 90% Milestones Equipment level international night connections 70% Connect Croatia and DACH with 5 lines Equipment level BeNeLux 90% Equipment level Nordics 95% Test Italy 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 # Bike Transportation 98,100 85,200 60,700 43,900 15,300 1, # Bikes 5

7 Current Megatrends Support Growth of Bus + Bike Market Cars as major status symbol get replaced Cars per 1,000 Inhabitants Between Years (Germany) (1) 420 (34%) yet travel grows on long distances in a connected world Growth Rate of Passenger Numbers by Distance Segment until 2030 (2) in km Ʃ Growth +16% % with strong focus on sustainability and green energy % 14% Sweet Spot for LD Bus Green House Gas Footprint in g/pkm (3) % % E 2020E 600-1,000 Core for Bus Product 20% Statistisches Bundesamt 2. BMVI Verkehrsverflechtungsprognose Umweltbundesamt

8 Agenda 1. Outline the Cycle FlixBus 2. Vertical or Horizontal? 3. Economic Viability 4. One Minute Summary 7

9 Vertical vs. Horizontal Bike Racks? Safety Costs Revenue Pedelecs 8

10 Agenda 1. Outline the Cycle FlixBus 2. Vertical or Horizontal? 3. Economic Viability 4. One Minute Summary 9

11 Modern transportation companies aim for non-transportation related ancillaries. 10

12 Average Distance of Bike PAX higher than average customer Transportation Distance of Bike Passengers 24.8% 75.2% <500 km >500 km 11

13 Economic perspective: Early break-even point Key question: Is the acquisition of bicycle racks economically viable? Two specific groups of demand of FlixBus passengers (1) 20% of all passengers with a bicycle ticket would have chosen FlixBus also without a bicycle additional receipt = bicycle ticket (2) 80% of all passengers would have chosen a different means of transportation or would canceled the trip additional receipts = bicycle ticket + personal ticket break-even at 170 Bike PAX Break-even point at 170 bike PAX, usually within the first year 12

14 Agenda 1. Outline the Cycle FlixBus 2. Vertical or Horizontal? 3. Economic Viability 4. One Minute Summary 13

15 One Minute - Summary Smart and green solutions offer great experience potential for demand site Current megatrends lead to a growing market for combination of transportation + bicycle 3 out 4 bike passengers travel 500 km 170 bicycles break even the costs of one bike rack FlixBus will transport 2018 for the first time more than bikes yearly More than 90% of all rides in D-A-CH are equipped with bike racks Ongoing tests in Italy and Croatia BeNeLux & Nordics first entities with >90% equipment ratio outside DACH 14

16 FlixBus A Smart and Green Cycling Experience for Everyone Martin Bethge, Senior Network Planning ::: martin.bethge@flixbus.com September 2018, Eurovelo and Cycle Tourism Conference Limburg

17 BACKUP 16

18 BACKUP FlixBus + Bike Experience Objective Analyze strengths Key No replacement of seats Booking process Define a business case Monetarize /km Identify risk stories Define a MVP Learn, understand, improve On-time-performance Development of Pedelecs Old CNL lines & ADFC quality routes vs. gravitation approaches Iterative process of internationalization Iterative process of improvement 17

19 BACKUP Heymann model Source: Own photos 18

20 BACKUP Thule model G6-929 incl. adapter for commercial vehicles Source: Own photos and Amazon.de 19

21 BACKUP Test groups lead to steady organizational structureplan Execute Close Reason Why Project Goal Deliverables Services beside core product are a part and necessity in modern transportation Cyclists are a group of potential customers There is a passenger ticket attached to every bike Tourism sector grows as passenger group Customer Happiness Profitability Long-term vision for a feature product Identify impact of bikes on different line clusters and types Defined equipment levels in all entities 20

22 BACKUP Future improvements for linking bus &user experience chain Improve infrastructure Digitalization transportation & tourism market Eco-friendly engines and regulations European network without borders 21

23 BACKUP User experience is a chain with a lot of links Quelle: kcw consulting Long distance buses are a part of intermodal transport chains. 22

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